AMD Q3 earnings: Stock falls as Q4 outlook disappoints
Published On Oct 29, 2024, 4:34 PM
AMD reported its Q3 earnings, meeting expectations for earnings per share at $0.92, while revenue exceeded expectations at $6.8 billion. However, the company's Q4 revenue outlook of $7.2 to $7.8 billion fell short of the expected $7.55 billion, leading to a drop in its stock price by over 5%. Despite strong demand perceived by CEO Lisa Su, concerns have arisen due to a 69% year-over-year decline in the gaming segment, which traditionally is a significant contributor to AMD's revenue.
Stock Forecasts
AMD
Negative
AMD's Q4 revenue guidance disappointed investors, leading to a decrease in stock price. Combined with the sharp decline in the gaming segment, this raises concerns about the company's growth trajectory, especially in the AI vertical where it competes against Nvidia. Short-term outlook seems bearish as the market reacts to the softer outlook and diminished growth in gaming.
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